Animal and Plant Health Inspection Service

Analysis in Support of Certification that the Rule will not have a Significant Economic Impact

on a Substantial Number of Small Entities

Final Rule: Importation of Papaya from Colombia and Ecuador into the Continental United 

States

Docket No.: 08-050-2

October 5, 2009

This final rule has been reviewed under Executive Order 12866. This rule has been 

determined to be not significant for the purposes of Executive Order 12866, and therefore, has 

not been reviewed by the Office of Management and Budget.

We will be amending the regulations regarding the importation of papaya cultivar Solo 

from Colombia and Ecuador into the continental United States. As a condition of entry, papayas

from Colombia and Ecuador will have to meet certain inspection and treatment requirements that 

mitigate phytosanitary risks associated with the South American fruit fly (Anastrepha 

fraterculus), the Mediterranean fruit fly (Ceratitis capitata), and a fungal plant pathogen (Phoma 

caricae-papayae). The mitigation measures include fruit fly trapping, pest management, cultural 

practices that maintain low pest prevalence, and hot water treatment to remove pests of concern. 

This final rule will make our import regulations more effective and less restrictive, while 

continuing to protect U.S. agriculture from the introduction of the identified plant pests.

The Regulatory Flexibility Act requires agencies to evaluate the potential effects of their 

proposed and final rules on small businesses, small organizations and small governmental 

jurisdictions. Section 604 of the Act requires an agency to prepare a final regulatory flexibility

analysis (FRFA) that describes the expected impact of the rule on small entities and the steps the 

agency has taken to minimize significant economic impacts on small entities. In place of the 
FRFA, the head of the agency may certify that a rule will not have a significant economic impact 

on a substantial number of small entities. This analysis provides the factual basis for 

certification of this rule. 

Papaya production is classified under North American Industry Classification System 

(NAICS) 111339, other non-citrus fruit farming. The Small Business Administration (SBA) 

classifies papaya producers as small entities if they have annual sales of not more than $750,000. 

In the United States in 2007, the average market value of agricultural products sold by farms 

classified under other non-citrus fruit farming was about $112,000, well below the small-entity

standard.

1 Most, if not all, papaya producers in the United States are small entities.

Importers and wholesalers of papayas could be affected by the proposed rule as well. 

These industries and their small-entity size standards are: Fresh fruit and vegetable wholesalers 

(NAICS 424480, 100 or fewer employees), grocery stores (NAICS 445110, $27 million or less 

in annual receipts), warehouse clubs and superstores (NAICS 452910, $27 million or less in 

annual receipts), and fruit and vegetable markets (NAICS 445230, $7 million or less in annual 

receipts). Many of the entities that comprise these industries are small. 

Since publication of the proposed rule, APHIS has obtained updated data on papaya

production and exports by Colombia and Ecuador, and domestic production. Hawaii is the major 

U.S. producer of papaya. In 2008, there were 177 farms with 2,040 acres (including bearing and 

non-bearing acres) producing papaya in Hawaii, the only State for which such data are

available.

2

 Total fresh utilization in 2008 of domestic papaya production was approximately

 

1 USDA NASS. 2007 Census of Agriculture (v1.2), Table 46, Selected Characteristics of Farms by North American 

Industry Classification System: 2007.

2 USDA NASS. Hawaiian Field Office, Fruit and Nuts Report. Papayas (annual). Oct. 20, 2008. 

<http://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Fruits_and_Nuts/annpap.pdf> 
30.9 million pounds, valued at $14.4 million.

3,4

 Approximately 50 percent of U.S.-produced 

fresh papaya is utilized within Hawaii. The final rule will exclude Hawaii from receiving papaya 

imports from Colombia and Ecuador. In 2007, estimated fresh papaya production in Colombia 

was 456 million pounds and in Ecuador, 95 million pounds.5 Thus, the two South American 

countries together produce about 18 times more papaya than is grown in the United States. 

Comments received on the proposed rule state that the importation of papayas from 

Colombia and Ecuador would cause financial harm to domestic papaya growers. APHIS expects 

such impacts to be insignificant. First, the United States is the largest importer of fresh papayas

in the world. The quantity of fresh papayas imported since 1999 has almost doubled as U.S. 

consumption per capita continues to increase. Imports as a percentage of domestic fresh papaya 

consumption has risen from 80 percent in 2000, to over 93 percent in 2007.

6

 

U.S. fresh papaya imports in 2008 totaled over 274 million pounds, which is nine times 

larger than domestic production. Mexico is the principal source of fresh papaya imports by the 

United States, while additional imports arrive from other Central and South American countries 

such as Belize, Brazil, Jamaica and Guatemala. U.S. producers of papayas compete against less 

expensive imports. In 2008, the prices of papaya imports from Mexico and Belize were

approximately 27 cents and 19 cents per pound, respectively, excluding freight and other costs of 

importation.

7,8

 Average 2008 papaya export prices for Colombia and Ecuador were 37 cents and 

 

3 USDA NASS. Hawaiian Field Office, Fruit and Nuts Report. Papayas (monthly). Feb. 12, 2009. 

<http://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Archive/xpap1208.pdf> 

4 USDA NASS. Commodity Papayas. Noncitrus Fruits and Nuts 2008 Summary. July 2009. 

<http://usda.mannlib.cornell.edu/usda/current/NoncFruiNu/NoncFruiNu-07-08-2009.pdf> 

5

Food and Agriculture Organization. FAOStat. Commodity “papayas” converted to pounds from tonnes. 

Retrieved 8/11/09 <http://faostat.fao.org/site/567/default.aspx#ancor> 

6 USDA ERS. Fruit and Tree Nuts Situation and Outlook Yearbook. Table F-9 Fresh papayas: Supply and 

Utilization. October 2008. <http://www.ers.usda.gov/Publications/fts/Yearbook08/FTS2008.pdf> 

7 Global Trade Atlas. United States Import Statistics, annual data. Commodity HS code 080720, Papayas, Fresh. 

Retrieved 8/10/09. <http://www.gtis.com/gta> 
23 cents per pound.

9

In comparison, the 2008 average market price in Hawaii received for 

Hawaiian papaya was 43 cents per pound.

10

 

In sum, the U.S. market for fresh papaya is dominated by imports, and becoming 

increasingly so. The addition of Colombia and Ecuador will not significantly affect sales by U.S. 

producers. Based on the foregoing information, the Administrator has certified that this final 

rule will not have a significant economic impact on a substantial number of small entities. 

 

8 Custom Import Value (C.V) – This value is generally defined as the price actually paid or payable for merchandise 

when sold for exportation, excluding import duties, freight, insurance, and other charges incurred in bringing the 

merchandise to the importing country

9 Global Trade Atlas.

10 USDA NASS. Agricultural Prices 2008 Summary. August 2009. 

<http://usda.mannlib.cornell.edu/usda/current/AgriPricSu/AgriPricSu-08-05-2009.pdf>